Part D Bid and Base Premium Will Drop in 2023; MA-PD Enrollment Surpasses PDP for the First Time in 2022

The monthly Medicare Part D base beneficiary premium for 2023 will be $32.74, a slight decrease from $33.37 in 2022, according to CMS. The Part D national average monthly bid amount continues to drop, from $38.18 in 2022 to $34.71 in 2023. Regional low-income premium subsidy amounts have increased over the past few years in most states, yet five states — New York, Illinois, New Jersey, Indiana and Kentucky — are projected to see a decline larger than 5% in 2023. South Carolina is projected to see the biggest jump, with its average subsidy amount going up from $31.12 in 2022 to $37.84.


In 2022, about 48.9 million Medicare beneficiaries are enrolled in Stand-Alone Prescription Drug Plans (PDPs) or Medicare Advantage Prescription Drug Plans (MA-PDs), according to a recent Kaiser Family Foundation analysis. This is the first year that MA-PD enrollment (25.8 million) surpassed PDP enrollment (23.1 million). Almost 26% of all Part D enrollees receive a low-income subsidy in 2022, while nearly six in 10 LIS-enrollees are covered by MA-PDs.

The top three Part D insurers by market share — UnitedHealth Group, Humana Inc. and CVS Health Corp. — currently account for 57% of enrollment. More than half of UnitedHealth and Humana’s Part D enrollees choose MA-PDs, while CVS Health has greater enrollment in PDPs.


In 2022, the enrollment-weighted average monthly premium for PDPs is $39.87, a 4% increase from the weighted average premium in 2021, whereas the enrollment-weighted average monthly portion of the premium for drug coverage in MA-PDs is only $10.77. Meanwhile, the enrollment-weighted average deductible for PDPs reached almost $400 in 2022, nearly 4.5 times larger than the average deductible in MA-PDs.


NOTES: MA-PD enrollment includes Medicare Advantage HMOs, PPOs, private fee-for-service and Medicare Savings Account plans; other Medicare private plans (including Medicare-Medicaid plans, Cost, and PACE) are excluded. BCBS excludes Anthem BCBS, which is a separate plan sponsor. The average premium for MA-PDs is for Part D coverage only, excluding any applicable premium charged for medical (Part A and B) benefits.

SOURCES: CMS. “Key Facts About Medicare Part D Enrollment and Costs in 2022,” Kaiser Family Foundation.

This infographic was reprinted from AIS Health’s biweekly publication RADAR on Drug Benefits.

© 2024 MMIT
Jinghong Chen

Jinghong Chen Reporter

Jinghong has been producing infographics and data stories on employer-sponsored insurance, public health insurance programs and prescription drug coverage for AIS Health’s Health Plan Weekly and Radar on Drug Benefits since 2018. She also manages AIS Health’s annual executive compensation database for top insurers and Blue Cross and Blue Shield affiliates. Before joining AIS Health, she interned at WBEZ, Al Jazeera English and The New York Times Chinese. She graduated from Missouri School of Journalism with a focus on data journalism and international reporting.

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